Modern Money Theory (MMT) Experiment 200620
June 20, 2020
Emailed to The United Nations, Fed Chair Jay Powell, St Louis Fed President James Bullard, Minneapolis Fed President Neel Kashkari, Dallas Fed President Robert Kaplan, Congressman Van Taylor, Congressman Colin Allred, Senator John Cornyn, Senator Ted Cruz, The U.S. SEC, and NYT/WSJ/WP/DMN/CNBC on 6/20/20.
Modern Monetary Theory
From Wikipedia, the free encyclopedia
Modern Monetary Theory or Modern Money Theory (MMT) is a macroeconomic theory that describes currency as a public monopoly and unemployment as evidence that a currency monopolist is overly restricting the supply of the financial assets needed to pay taxes and satisfy savings desires.
MMT is an alternative to neoclassical economic theory and may be more effective in describing the global economy in the years following the Great Recession.
MMT argues that governments create new money by using fiscal policy. According to advocates, the primary risk once the economy reaches full employment is inflation, which can be addressed by gathering taxes to reduce purchasing power. MMT is debated, with active dialogues about its theoretical usefulness, the clear useful real-world practical applications and implications, together with the varying effectiveness of its targeted use and varying challenges of its policy prescriptions.
I contend, that MMT is a seriously flawed and even dangerous macroeconomic theory! This theory proposes that a sovereign entity can adopt a fiscal policy that prints money in the sovereign currency as needed to maintain full employment and defer the collection of taxes to pay for this money creation to a later time!
I further contend, that MMT is presented as an excuse for the current fiscal policy of the U.S. Government. The U.S. Government has been conducting an experiment in the application of MMT for the last 51 years by operating the U.S. Government fiscal policy with Cash Accounting rather than proper and Generally Accepted Accounting Principles (GAAP Accounting).
I further contend, that this MMT experiment has failed miserably because it has caused Economic Inequality, caused Global Warming, caused the Coronavirus Pandemic, promoted White Supremacy, has set the stage for The Greatest Depression, and is destroying Planet Earth!
When a sovereign entity prints money, it then has the responsibility for deciding how much to print, who gets this money, and how it is to be spent!
The American MMT experiment says print a lot of it (so far $152.8 Trillion), give it to the U.S. upper class, and spend it on whatever Americans may want to buy!
The American MMT experiment is a classic Ponzi scheme, I call it USAPonzi, that is in the process of printing an infinite amount of money, I call it imaginary-counterfeit money, by borrowing it from the future Americans, and giving it to the U.S. upper class by undertaxing them!
The main problem with MMT, as with any Ponzi scheme, is that it favors a selected few early and informed participants at the devastating expense of the multitude of late and uninformed participants!
The following are links to my whistleblower letters to the U.S. General Public and to the U.S. Congress in an attempt to expose this fraud and corruption within the U.S. Government that has produced the American MMT experiment!
Whistleblower Letter #1 to the U.S. General Public
Whistleblower Letter #5 to the U.S. Congress
|US National Debt
|Cash Deficit in FY2020
|GAAP Deficit in FY2020
|US Unfunded Future Liabilities
|US Unfunded Liabilities (GAAP)
|US Total National Assets
Source: www.usdebtclock.org June 20, 2020
*usdebtclock.org has stopped explicitly reporting the GAAP Deficit. The GAAP Deficit is implicitly reported as the change in US Unfunded Liabilities (GAAP). US Unfunded Liabilities (GAAP) were $126.1 Trillion on October 1, 2019 the start date for FY2020, therefore the GAAP Deficit in FY2020 will be >$26.7 Trillion (>$152.8T-$126.1T = >$26.7T).
I have written two websites (www.usaponzi.net and www.usaponzi.com) and eight books that explain this fraud and the impact it is having on Planet Earth. My latest book (USAPonziE) is available on Amazon in Kindle or Paperback format and can be downloaded from my www.usaponzi.net website in Kindle or pdf format.
This is the biggest ($152.8 Trillion) financial fraud ever perpetrated, I call it “USAPonzi: The Great American Fraud” and “The Biggest Ponzi Scheme on the Planet”!
John W. White